John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Must-Read Trump Quote on Social Securityġ0 Reasons Why I'm Selling All of My Apple Stock The $16,728 Social Security Bonus You Cannot Afford to Miss That gives Netflix another year or two before subscribers may start to raise their eyebrows.ģ Stocks That Are Absurdly Cheap Right Nowĥ Warren Buffett Principles to Remember in a Volatile Stock Market The recent Piper Jaffray survey also showed that 64% of respondents said they wouldn't cancel their subscription before the price topped $15. The bottom line is, Netflix is still an incredible deal, and will remain so in spite of a few more inevitable price hikes. And considering the lineup of content due out in 2019, including the third season of its hit original series Stranger Things, subscribers will most likely shrug off the $1 or $2 subscription increase. So it's safe to say the price hike didn't scare customers away. At the time, this figure broke its previous record of 7.05 million new subscribers. After raising prices in October 2017, Netflix reported 8.33 million new global subscribers for the fourth quarter. In fact, Netflix's last price hike went over well for the same reason. The results of the survey led the investment services firm to believe that so long as people continue to believe Netflix improves each year, then it can continue its annual price hikes with little to no pushback. Netflix subscribers found that 71% said they thought the platform's content had improved. A recent Piper Jaffray survey of about 1,100 U.S. In addition, its basic (non-HD) plan's price went up by $1 to $8.99, and its premium plan went up by $2 to $15.99.Ĭustomers seem to agree. 15, Netflix raised the price of this plan by $2 to $12.99. Netflix's previous price hike came in October 2017 when it raised its standard plan by $1 to $10.99. subscribers, according to RBC Capital estimates. This most recent price increase is expected to give the company $1.18 billion in incremental revenue from its 57 million U.S. And one way to do that is with an annual price hike. With its continuously growing content budget and debt, Netflix needs to raise cash - lots of it. Netflix has $18.4 billion in both long-term debt and shorter-term obligations, according to its last quarterly report. Five years ago, Netflix started investing in original content, and its content budget has ballooned from $3 billion in 2014 to $8 billion in 2018. The company has gone from zero to nearly 140 million subscribers worldwide in 12 years. Netflix has had a quick rise to the top position in the video-streaming market. Netflix is hiking up its monthly subscription price for the fourth time. The Netflix website's page to start a free trial of its service
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